How Property Managers Can Prepare for the New Energy Efficiency Rules During 2025

If you are a property manager or lettings agent, big changes are on the horizon. New government regulations mean that from 2025, rental properties in England and Wales must meet stricter energy efficiency standards. Every landlord and renter will be impacted by these regulations, so it will be vital for property professionals like you to make sure everyone is prepared.

In this guide, we break down exactly what’s changing with Energy Performance Certificates (EPCs), what landlords need to do now, and how you can protect your landlords from fines, lost income, and costly last-minute upgrades.

Let’s get you ahead of the game.

What Are the New EPC Rules in 2025?

Starting 1 January 2026, any new tenancy agreement in England and Wales must be linked to a property with an EPC rating of C or above. This is a big leap from the current minimum of E. While plans to extend this to all existing tenancies by 2028 have been delayed, the government’s long-term aim is clear:

By 2030, all privately rented homes should reach at least EPC band C.

Key points:

• New tenancies from 2026: Must have an EPC rating of C or better.

• Existing tenancies: Expected to be upgraded to the C standard by 2030 (although dates may vary).

• Fines: Landlords could be fined up to £30,000 or banned for non-compliance.

And that is not all. The government is set to transform the calculation of EPCs in 2026 — from assessing energy expense to prioritizing heat retention, heating system efficiency, and smart-readiness. This means some properties currently rated C might need to be reassessed.

Why This Matters to Letting Agents and Property Managers

Less than 50% of privately rented homes in England currently meet the upcoming EPC Band C standard — meaning over 2 million properties may require upgrades. That’s a significant proportion at risk of falling foul of new rules.

As a property manager, you are put in a position of authority:

• Alert landlords to changes in the law.

• Suggest recommended contractors for upgrades.

• Assist landlords in avoiding void periods and fines by acting early.

• Protect your own stock levels, as some landlords may sell up rather than invest.

Rightmove reports that homes with an EPC rating of C or above are already letting 8 days faster and fetching up to £140 more per month — a powerful selling point when persuading reluctant landlords.

The Cost of Compliance: What Landlords Need to Know

Upgrading rental homes is expensive:

Average upgrade costs are estimated at £6,100 to £6,800 per property.

But government data shows landlords are typically only budgeting around £2,400 — less than half of what’s needed.

Typical upgrades include:

• Insulation (loft, wall)

• Double or triple glazing

• Heating system improvements

• Smart meters

LandlordZone highlights that fabric-first measures (like insulation and windows) will carry more weight in the 2026 EPC system. So landlords should prioritise these now, while delaying major system swaps like heat pumps until rules are finalised.

Additionally, Property Industry Eye warns that costs will vary: properties in older stock regions (such as the North) may face higher upgrade costs than newer homes in the South.

So, What Should Property Managers and Letting Agents Do Now?

Acting early will protect your landlords, tenants, and your business. Your action plan is as follows:

1. Review Your Portfolio
   - Determine which properties are under EPC band C.
   - Check EPC expiry dates (the certificates last for 10 years).
   - Identify properties that will need to be reassessed in accordance with the new system in 2026.

2. Contact Landlords in Advance
   - Provide updates on guidelines, deadlines, and penalties.
   - Set reasonable expectations for the cost of the upgrade.
   - Emphasise that properties with an EPC of C or higher are renting out more quickly and for higher prices.
   

3. Expand Your Network of Contractors and Retrofits
   - Join forces with reputable heating and insulation installers.
   - Establish connections with certified retrofit assessors now, before demand increases, to get ahead of the growing shortage of retrofit workers.
   

4. Recommend 'No-Regret' Upgrades
   Landlords are currently prioritising low-cost improvements like
   - Draught-proofing
   - LED lighting
   - Loft insulation
   
   But they should also invest in fabric-first upgrades:
   - Wall insulation
   - Double/triple glazing
   
   These will count more heavily in the revised 2026 EPC calculation.

5. Prepare Tenants for Changes
   - Explain that upgrades will lower bills and improve comfort.
   - As landlords recover expenses, be open and honest about potential rent increases.

What’s Changing in the 2026 EPC Reform?

Updates are anticipated to include:

• Prioritise smart readiness, heating efficiency, and heat retention.

• Fabric-first measures (insulation, glazing) are gaining more weight.

• Likely reduced penalties for electric heating systems like heat pumps.

• A possible shift away from the current A-G rating scale.

Even properties that already meet EPC C today may need reassessment once their certificate expires under the new rules.

Impact on the Rental Market

For Landlords:

• If unable or unwilling to invest, they may withdraw from the market.

• May pass upgrade costs on to tenants via rent increases.

• Risk void periods or fines if properties are rendered unrentable.

For Agents:

• In the event that landlords sell, stock may decrease.

• Agents with the ability to support upgrades and compliance will be in greater demand.

• An opportunity to establish your organisation as an authority on energy efficiency.

For Tenants:

• Rents may increase.

• Houses will be more affordable to operate, better quality, and warmer.

• Annual energy bill savings of £240 on average.

PropCall's Advice: Time is on your side, but do not wait too long!

Landlords should:

• Prioritise fabric-first upgrades now — these will definitely count under the new system.

• Avoid expensive heating swaps until 2026 rules are finalised.

• Budgeting now will help you avoid a last-minute rush in late 2025.

Maintain a Competitive Edge

The EPC changes present both opportunities and challenges for letting agents and property managers. In a more competitive market, you will gain loyalty and stand out if you take proactive measures, communicate effectively, and guide your landlords.

As of right now, more than 2 million rental properties remain below EPC C.

• Begin auditing your portfolios

• Expand your network of contractors

• Establish yourself as the go-to authority for landlords who require assistance.

Want More Advice?

PropCall assists property managers and letting agents in protecting their clients and staying ahead of rental laws. To learn how we can help your agency during and after the EPC changes, get in contact with us today.